MASSACHUSETTS STATE TAX CALCULATION#
State Tax Calculation - General Set Up#
Please refer to the US Federal Tax Calculation document's 'General Set Up' section for all set up requirements.At state level, the following screens should be verified set up for each state:
IPUTR#
This screen is used to:- view US Tax Rates by state and to enter the Overridden rates and Wage Base.
- suppress some SUTA Surcharge Calculation for some states by checking the 'Do not Calculate' toggle
IPUTP #
This screen is used to:- view US Tax Miscellaneous Parameters by the states that are applicable for IPRLU
IDGV#
- This screen may optionally contain specific Override rates and Wage bases by Government Registration for each Registration from the Pay Header's group
- IDGV overridden amounts take precedence over the IPUTR overridden amounts
IPRLU/IPRULS #
- Each employee must be set up with the applicable Tax Methods
- Miscellaneous Tax Parameters must be set up by the states that need to be paid
UPRLU #
This process audits the US Tax Filing information and generates IPRLU Miscellaneous Tax Parameters information according to IMCT set upIPPH #
- The Pay Header tab must specify the default Work Jurisdiction and Home Jurisdiction
- In the Pay Lines tab, the Jurisdiction field must specify the Work Jurisdiction of this pay line
- After Trial Calc or UPCALC, the Pay Amounts tab will contain all US Taxation amounts in summary that are used for the calculation of net pay
- The Pay Jurisdiction tab contains the default Work Jurisdiction and Home Jurisdiction
- After Trial Calc or UPCALC, the Pay Jurisdiction tab contains all US Taxation amounts by jurisdiction in detail
Michigan State Tax Calculation#
On IPUTR, there is a list of applicable taxes to be calculated for State of Michigan:| 26-000-0000-SIT-000 | Michigan State Tax |
| 26-000-0000-ER_SUTA-000 | Michigan State Unemployment Tax |
If UPUTR is run with list of IDTX Jurisdictions, then the following entry may exist:
| 26-000-1619197-CITY-000 | Big Rapids City Tax |
| 26-000-619906-CITY-000 | Albion City Tax |
| 26-000-1617959-CITY-000 | Detroit City Tax |
MI – IPRLU Set Up#
The Miscellaneous Tax Parameters must be set up for the following Miscellaneous Identifiers| TOTALALLOWANCES | Optional Enter the total number of allowances |
| PREDOMINANT_CITY | Optional This is only used for Multiple Tax Jurisdictions |
e.g. set IPRLU PREDOMINANT_CITY to 1619197 for Big Rapids
In most cases, PREDOMINANT_CITY should not be entered. When this is entered, the Non-Resident tax will be calculated at Non-Resident rate.
MI – ER SUTA Rate#
ER SUTA may be bypassed on IPUTR with ‘Do not Calculate’ or IPRLU ‘SUI ER Method’ = ‘Do not Calculate’.There are two options to set up the ER SUTA rate by state:
- IPUTR
- Enter the SUTA ER rate that is given by the government on the Override Tax Rate field.
- This rate is applicable for the entire company within the State of Michigan.
- IDGV
MI – City Taxes#
IPUTR - Employer SUTA Surcharge Tax- Iowa Reserve Fund - The Tax Rate for the Iowa Reserve Fund is set at 0 by the government, therefore this tax is not calculated
- Iowa Administrative Surcharge Tax - The Tax Rate is set at 0 by the government, therefore this tax is not calculated
If UPUTR is run with list of IDTX jurisdictions, the following entries will exist with the default City tax rates.
| 26-000-1619197-CITY-000 | Big Rapids City Tax |
| 26-000-619906-CITY-000 | Albion City Tax |
| 26-000-620755-CITY-000 | Battle Creek City Tax |
| 26-000-1617959-CITY-000 | Detroit City Tax |
City taxes are calculated by GNIS code, please set up Pay Components for City Tax PC Usages.
MI – Trial Calc Example#
Symmetry Set Up - MI_01.jpgWork GEO: MI 26-107-1619197 Big Rapids
IPRLU Miscellaneous Tab
PREDOMINANT_CITY = 0
TOTALALLOWANCES = 0
| PC 8046 Res SIT Earn | = 2183.31 |
| PC 8056 Res SSP Earn | = 908.25 |
| PC 6042 Res SIT | = 94.97 |
| PC 6052 Res SIT Sup | = 39.51 |
| PC 6703 SUI ER Contr | = 3403.85 x IPUTR 26-000-0000-ER_SUTA-000 Overridden Rate 0.103 |
| = 350.60 | |
| PC 6951 Res CITY Tax | = 2183.31 x IPUTR 26-000-1619197-CITY-000 Rate 0.01 |
| = 21.83 | |
| PC 6953 Res CITY Sup Tax | = 908.25 x IPUTR 26-000-1619197-CITY-000 Rate 0.01 |
| = 9.08 |
Notes#
Click to create a new notes pageMinnesota State Tax Calculation#
On IPUTR, there is a list of applicable taxes to be calculated for State of Minnesota:| 27-000-0000-SIT-000 | Minnesota State Tax |
| 27-000-0000-ER_SUTA-000 | Minnesota State Unemployment Tax |
| 27-000-0000-ER_SUTA_SC-019 | Minnesota Workforce Enhancement Fee |
| 27-000-0000-ER_SUTA_SC-042 | Minnesota Additional Assessment |
| 27-000-0000-ER_SUTA_SC-043 | Minnesota Federal Loan Interest Assessment |
MN – IPRLU Set Up#
The Miscellaneous Tax Parameters must be set up for the following Miscellaneous Identifiers| TOTALALLOWANCES | Optional Enter the total number of allowances |
| PREDOMINANT_CITY | Optional This is only used for Multiple Tax Jurisdictions |
e.g. set IPRLU PREDOMINANT_CITY to 1619197 for Big Rapids
In most cases, PREDOMINANT_CITY should not be entered. When this is entered, the Non-Resident tax will be calculated at Non-Resident rate.
26.1 – IPRLU Set Up
- The Miscellaneous Tax Parameters must be set up for the following Miscellaneous Identifiers - if these Identifiers do not exist, UPCALC will generate the default entries for the Identifiers
FILINGSTATUS - Mandatory - S'-single, 'M'-married, or 'MH'-married but w/h at higher single rate. TOTALALLOWANCES - Optional, enter the total number of allowances
26.2 MN – ER SUTA Rate
User may bypass ER SUTA on IPUTR with ‘Do not Calculate’ or IPRLU ‘SUI ER Method’ = ‘Do not Calculate’. There are 2 options to set up ER SUTA Rate by State: (1) IPUTR - enter the SUTA ER Rate that is given by the Government on the Overridden Tax Rate field - this rate is applicable for the entire company for State of Minnesota
(2) IDGV - if there is a specific rate given by the government for different State Registration #, - then enter on IDGV by ‘Reg Type’, this overrides the IPUTR Rate
26.3 MN – IPPC / PC Usages
IPPC – Set up Pay Components by PC Usages
If user wants to calculate the following taxes, please set up IPPC for these PC Usages: Usage Description 7340 MN-Workforce Enhance Fee 7341 MN-Addn Assessment Tax 7342 MN-Fed Loan Assess Interest
26.4 MN – Special Taxes
IPUTR - Employer SUTA Surcharge Tax
(1) Minnesota Workforce Enhancement Fee - by default, the following taxes will be calculated unless IPUTR ‘Do Not Calculate’ Toggle is checked or IPRLU ‘SUI ER Method’ = ‘Do not Calculate’
(2) Minnesota Additional Assessment - the Minnesota Additional Assessment is a percentage of the tax calculation not a percentage of the taxable wages. For the tax years 2006 through 2010, the rate is 14%.
(3) Minnesota Federal Loan Interest Assessment - the Minnesota Federal Loan Interest Assessment is set at Rate of 0, therefore this is not calculated
26.5 MN – Trial Calc Example
IPRLU MN0001 FILINGSTATUS = S MN0002 TOTALALLOWANCES = 0
PC 8046 Res SIT Earn = 1940.61 PC 6042 Res SIT = 116.00
PC 8056 Res SSP Earn = 1834.75 x 6.25 % = 114.67 Round to nearest dollar PC 6052 Res Supp Tax = 115.00
PC 6540 MN-Workforce Enhance Fee = 4115.39 x IPUTR 27-000-0000-ER_SUTA_SC-019 Tax Rate 0.0012 = 4.94
PC 6703 SUI ER Contr = 4115.39 x IPUTR 27-000-0000-ER_SUTA Override Tax Rate 0.0952 = 391.79
PC 6541 MN-Addn Assessment Tax = 391.79 x IPUTR 27-000-0000-ER_SUTA_SC-042 Tax Rate 0.14 = 54.85 - Note: Minnesota Additional Assessment is a percentage of SUTA tax calculation not a percentage of the taxable wages.
